Cash QUESTION Proud Company acquired 90 percent of Scarlet Company's outstanding common stock for $63,000 on January 1, 2021, when the book value of Scarlet's net assets was equals to $70,000. Proud uses equity method for investments. Adjusted trial balance data for Proud and Scarlet as of December 31, 2021, are as follows: Proud Company Scarlet Company DR CB DR CR $25,000 $8,500 Accounts Receivable 16,675 6,000 Inventory 19,000 12,000 Investment in Scarlet 71,100 25,000 27,450 Buildings and equipment 165,900 58,000 Cost of Goods Sold 33,500 15,500 Depreciation Expense 4,325 3,500 Selling and Administrative Expense 26,000 17,500 Dividends Declared 8,000 4,000 Accumulated Depreciation $56,500 $16,600 Accounts Payable 30,600 6,350 Bonds Payable 65,000 10,000 Common Stock 62,500 50,000 Retained Earnings 85,000 20,000 Sales 83,200 49,500 Income from Scarlet 11,700 Total $394,500 $394,500 $152,450 $152,450 Land a) Prepare the journal entries on Proud's books for the acquisition of Scarlet on January 1, 2021 and entries related to the investment in Scarlet Company during 2021 (15 points). b) Prepare Book Value calculation table (10 points) c) Prepare basic consolidation entry (35 points). d) Prepare accumulated depreciation consolidation entry (10 points). e) Prepare a consolidation worksheet for 2021 in good form (30 points)